# In the matter of M.V. Omni Projects (India) Limited C.P. No. (IB) 404-9-NCLT-AHM-2019

> NCLT judgment dated 2019-08-29. Citation: TCN-2019-NCLT-01694. The case involves an application filed by Nandish Patel, an operational creditor, against M.V.…

- **Court:** NCLT
- **Order date:** 29 Aug 2019
- **Citation:** TCN-2019-NCLT-01694
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mv-omni-projects-india-limited-cp-no-ib-404-9-nclt-ahm-2019-0d94f900

## Summary

### Background

The case involves an application filed by Nandish Patel, an operational creditor, against M.V. Omni Projects (India) Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, for non-payment of salary. Nandish Patel claimed that the corporate debtor failed to pay his salary for several months despite his requests and pleas, causing him financial damages and losses. The corporate debtor raised objections, including the existence of a pre-existing dispute and the inclusion of interest on a personal loan in the claimed amount.

## Facts

Nandish Patel, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M.V. Omni Projects (India) Limited, the corporate debtor, for non-payment of salary. Patel claimed he worked for the company from August 2017 to January 2019, initially as Chief Operating Officer (COO) and later with additional charge as Chief Financial Officer (CFO). He alleged that the company failed to pay his salary for several months in 2018 and 2019, despite repeated requests. The outstanding amount claimed was Rs. 14,71,885/-. Patel submitted evidence of his employment, salary slips, e-mail communications, and a demand notice. The corporate debtor argued that there was a pre-existing dispute and that the claimed amount included interest

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## Issues and analysis

### Issue 1: Whether there is an "operational debt" as …

**Ratio:** Section 5(21) of the Insolvency and Bankruptcy Code defines "operational debt"

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**Reasoning:** The court considered the definition of operational debt under the IBC and the evidence

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**Interpretation:** The term "operational debt" is interpreted broadly to include claims

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**Application:** The court found that the applicant's claim for unpaid salary fell within the

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Nandish…
- **Respondents:** M.V. Omni…; M.V.Omni Projects…
- **Advocates:** Jaimil…; Arjun S…; +1 more

## Timeline

- **2017-08-01 — Applicant started working with the respondent…**: Nandish Patel started working with M.V. Omni Projects (India) Limited in the Senior…
- **2018-07-01 — Non-payment o…**: The respondent company failed to make payment of salary to the operational creditor for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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